USING INSTAGRAM AS CUSTOMER SERVICE? STATISTICS SHOW MOST YOUNG BRITS SHARED THEIR BANKING DETAILS ON INSTAGRAM WHICH CAN LEAD TO FRAUD

•  Eighty-five percent of young people in Britain shared their banking details on Instagram, using their information details which can lead to ID theft and fraud.
•  Six percent said they allow someone remote access to their bank account.
• Data shows that 47% of scams in 2018 were people under 30 and 52% said that they are approached by scammers on social media such as Instagram.
• Research found that 33% of under 25s have copied celebrity posts.
• Young Brits, according to bank research stated that 87% shared their personal information on social media such as posting photos on their Instagram.
•  Ten percent of celebrities confessed they had shared the name of a pet on Instagram and also used it as a password. This can lead to fraud later as the bank research reported.

CUSTOMERS CAN USE INSTAGRAM TO FIND THEIR PREFERRED FINANCIAL ADVISERS AND USE IT AS A CUSTOMER SERVICE PLATFORM PERSONALLY

• Instagram in UK has 14 million active users according to reports, with 64% under 30 and 46% have a household income of over £48,000 per year. Because of this, large financial brands build relationship with young people in their 20s, for example UBS.
• Nucleus Financial Group stated that Instagram is fertile soil to attract clients for financial advisers.
• Instagram can be used to attract clients because financial advisers can build community with the case of their clients and make posts that shows that the effectiveness of their financial advice.
• Statistics show 60% of UK financial advisers use Instagram.
• Many clients and prospects use social media as a source of information and a communication channel to get their clients more engaged with the financial advisers.
•  Twenty-eight percent of financial advisers use social media to get clients and 6% to 10% of prospects come from social media usage.

IF THE FINANCIAL BRAND HAS A CRISIS, CUSTOMERS USE INSTAGRAM TO HUNT DOWN THE BRAND WITH HARSH COMMENTS

• Instagram is a customer service platform and customers use this to ask questions and make their feelings heard when problems occur, sometimes in a harsh way.
• A recent issue is experienced by TSB Bank UK, when this online bank experienced a crisis breaking out on social media. There’s no way of knowing how the crisis will spread.
• The more frustrated people get, the more they use Instagram as a tool to hunt down the financial brand because it has presence and comments.
• Although TBS bank hadn't posted anything since March 2018, people still commented to old posts because of the fraud problem.
• Majority of fraud claims across UK banking are from innocent victims who have been targeted by criminals and organized gangs. Because of this, TSB bank will refund fraud victims.
• This started when the bank had major upgrade of its system and warned 1.9 million of its customers that some services such as online banking, making payments or transferring money, wouldn't be possible for several days and continued for six weeks.
• Furious TSB users vented their anger at the bank, complaining everywhere on social media from Twitter to Instagram.

Research Strategy:

INSTAGRAM IN THE FINANCE INDUSTRY: BEST PRACTICES

• According to a report from MyCustomer, what began as a fun way for brands to engage their audience has changed considerably over time. Instagram is now another channel for customers to contact brands when they need a quick response, or to publicly share their feelings vis-à-vis the brand.
•  Instagram is no longer an engagement and marketing tool. Instagram has become a public platform where customers can air their grievances. Brands on the platform can (arguably, must) respond to these issues.
• According to Digiday, Instagram now features a contact button that allows customers to directly contact businesses/brands on the platform with their questions and concerns. Financial institutions have embraced this opportunity to communicate with their customers.

CREATE VISUALLY APPEALING CONTENT

• According to a LyfeMarketing report, financial institutions should create visually appealing content on Instagram to ensure successful customer engagements. Social media users expect high-quality images from brands, and they expect these images to be both interesting and engaging.
• The Financial Brand reported on research done by HubSpot that found visual content is over 40 times more likely to get shared on social media than any other type of content. This sharing of visual content would lead to increased customer engagement for the associated brand.
• According to AhaMedia, American Express became more familiar and comfortable with its customers by sharing photos and more appealing content that people connect with.
• The Deer Valley Credit Union provides inspirational and humorous posts, photos of credit union employees, and consolidates successful use of appealing visuals on Instagram.
• The Finacial Brand notes that Bank of America does a good job with its Instagram visuals by giving priority to the visual content the platform demands. Also, Bank of America has tailor-made its content to suit the demands of its audience.

INCREASE NON-PRODUCT ENGAGEMENT

• According to a report from Kasasa, financial institutions can easily involve their customers by showcasing regular events that promote solid engagement on Instagram. Financial institutions can do this by showcasing community activities, recent occurrences, and the latest news. This way, customers are always engaged and ask questions about the associated brands. Building more confidence and trust in the financial institutions in the process.
• An article from Concured outlines how the Bank of Montreal engages its customers on Instagram by showcasing sponsored sports events, charity events, volunteer days, and other employee activities.
•  AhaMedia reports that Credit Sesame is not only being brand-focused but also shares a variety of content to keep its customers more engaged.
•  Morgan Stanley uses Instagram to share its overall role in the community and its impact on social responsibility through volunteering with its customers. In the process, Morgan Stanley has consolidated its core values and curated a positive company image.

FREQUENT POSTING

• According to a report from Lyfemarketing, frequently posting is a vitally important best practice to ensure consistent interaction with customers. More posts encourage more interactions, while fewer posts result in fewer interactions. The potential impact of the latter is customer migration to competitors' pages in search of content.
• According to a survey reported on by Newswhip, Forever 21 made about 1454 Instagram posts that attracted 119.5 million engagements.
• In 2018, Starbucks's frequent posting on Instagram resulted in 57.8 million interactions, with an average interaction rate of 238,000 per post.

RESEARCH STRATEGY

SHOPPABLE POSTS

• Over the past year, Instagram introduced product tags in feed posts, shopping feed via the 'explore' tab, and stickers on Instagram stories.
•  In 2018, shoppable posts expanded into more countries, which include the United Kingdom, Australia, Brazil, Canada, Germany, Italy, France, and Spain.
• The trend has greatly impacted on customer service by allowing buyers to conveniently purchase directly through the platform, saving them money and time.
• As a trend, shoppable posts were driven by the need to convert visitors to customers as well as the growing need for convenience shopping among the new savvy generation.
• Statistics show that more than 200 million Instagrammers check the 'explore' grid every day, and that number is expected to rise this year.

INSTAGRAM IN-APP CHECK OUT

• With its new in-app check out feature, Instagram will now let customers buy products directly inside the app.
• The in-app check out feature makes Instagram be like a digital mall and comes with an exceptional experience for the tech-savvy group of customers who are already accustomed to shopping through digital channels.
• Instagram is creating better customer service by making it a lot simpler for customers to buy things they come across in their feed. They will ll be able to pay for that product inside the app instead of leaving Instagram to finish the transaction on a retailer’s website.
• The trend has been driven by the current wave of the use of mobile payments and e-wallets for convenient check-outs.
• It has also been driven by the emergence of the new digital-savvy group of shoppers on social media.

USE OF INTERACTIVE STICKERS FOR ENGAGEMENT

• Brands that are seeking to sell their products have resorted to the engaging stickers to create a better experience for customers.
• Some call-to-action GIF stickers encourage people to “swipe up,” and these stickers also help make product stories on Instagram look engaging and more fun for customers.
• The trend has impacted on customer service by allowing users to engage with brands in a fun way and also with their followers and other Instagram users at large through Instagram stories.
• The trend is driven by the need for brands to create a more engaging atmosphere for customers and followers, in a manner that influences them to purchase their products.
• Also, the modern-day shopper enjoys experiential shopping in which he/she derives much more value and additional benefits in the process.

SHOPPING COLLECTION FEATURE

• Through the shopping collection feature, individuals on Instagram who come across items they are interested in from their feeds or stories can now save it to their shopping collection.
• Users can do so by tapping on the product tag and then on the 'save' icon.
• The new feature has improved customer service, allowing customers to have a fast way of making a wish list and storing gift ideas in preparation for events or holidays.
• The trend has been driven by the continuous demand for more features that are convenient.  

RESEARCH STRATEGY